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Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers

Stockin Company produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Activity Pool Department Costs Cost driver

Binding $247,500 Number of units

Printing 798,000 Machine hours

Product design 191,250 Change orders

General 608,250 None

Total overhead costs$1,845,000

Other information is as follows:

Tablets Books

Units 75,000 18,750

Direct materials cost per unit $4.00 $12.00

Direct labor cost per unit $5.00 $10.00

Direct labor hours 30,000 15,000

Machine hours 150,000 112,500

Change orders 1,875 3,750

(A) Determine the unit product cost for Tablets using the traditional costing system.

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